Why it exists
Life insurance exists to transfer mortality risk from households to large financial pools.
Why it’s necessary
It protects families, stabilizes intergenerational wealth, and underpins long-term savings products.
Key components
Policy underwriting
Actuarial science
Investment management of float
Claims processing & distribution
How to evaluate businesses
Premium growth, lapse rates, investment portfolio performance, capital adequacy, and expense ratios matter most. Float durability defines long-term returns.
How the industry could be improved
Faster digital underwriting, personalized pricing via health data (ethically governed), automated claims, and better integration with retirement planning platforms.